New Delhi, July 02: External Affairs Minister S M Krishna embarks on a four-day visit to Mauritius and Mozambique from Friday to further strengthen relations with the Indian Ocean Rim countries.
In Port Luis, Krishna will hold talks with his Mauritius counterpart Arvin Boolell on a range of issues, including on renegotiation of the Double Taxation Avoidance Treaty (DTAA).
Krishna will seek to enhance strategic dialogue with the island nation as also to deepen economic and cultural ties.
The DTAA with Mauritius is allegedly being misused by some investors, who route their inflows through the low-tax island nation, despite being located in a third country. The practice is known as treaty shopping in the tax parlance.
India had sought to re-negotiate the DTAA with Mauritius, besides 75 other countries, as it is concerned over a large tax revenue loss.
During the 2000-2010 period, the maximum FDI inflows into India came through the Mauritius route. Investors pumped in a whopping USD 47.24 billion into the country from Mauritius, constituting 43 per cent of total FDI.
In Maputo, Krishna is expected to focus on expanding economic and strategic ties with one of the better performing economies in the region.
This would be the first visit by an External Affairs Minister to Mozambique since 1999.
-PTI